VAT is a very complex tax. In O’Donovan Lavin we advise clients of potential exposures to VAT and VAT saving methods. VAT affects multiple transactions and because of this errors made can be very costly. VAT planning and regular VAT reviews come highly recommended as proper planning can generate substantial savings.

We provide all VAT compliance services including VAT registration, preparing and filing VAT returns and cross – border VAT reclaims.

We advise clients on the following:

  • international trade
  • VAT deductibility entitlements
  • VAT cash flow management
  • VAT on imports/exports
  • VAT Groups
  • Bad debt relief

We also provide tax advice on more complex areas such as VAT on property. The current rules for VAT on property were introduced in Finance Act 2008. VAT can arise on the sale of a property or the letting of a property. Many factors are taken into consideration before determining whether the property transaction is VATable and this is where professional advice is crucial.

The new VAT on property rules introduced in FA 2008 introduced a Capital Goods Scheme (CGS). The CGS provides for the adjustment of VAT deductibility in respect of the acquisition, development or refurbishment costs over the ‘VAT-life’ of a property. The CGS does not have any impact in respect of properties that are used for their entire VAT-life for either fully taxable or fully exempt purposes. The purpose of the CGS is to reflect changes in the use to which the property is put over its VAT-life and to ensure fairness and proportionality in the VAT system.

The owner is required to compare the amount of VAT deducted on the acquisition or development with the usage of the property. This determines the VAT deductible or VAT payable by the owner. We can assist you with creating and maintaining your capital goods record.